City of Richmond DPW CNG Project James A Jackson Ransford O. Ellis Director, DPW Oper. Manager, DPU

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City of Richmond DPW CNG Project James A Jackson Ransford O. Ellis Director, DPW Oper. Manager, DPU Department of Public Works, Richmond, VA October 17, 2013

CITY OF RICHMOND DPW COMPRESSED NATURAL GAS (CNG) REFUSE TRUCK FLEET The City of Richmond Adopted the US Mayors Climate Protection Agreement That Seeks to Reduce Global Warming From Green House Gases By 2030 Accomplishing this objective initiated a conversation between the Department of Public Works And The Department of Public Utilities May June 2009 The Department of Public Works Is responsible for refuse collection The Department of Public Utilities Distributes Natural Gas to over 150,000 residents 2

DPU NATURAL GAS SERVICE AREAS 3

CITY OF RICHMOND DPW COMPRESSED NATURAL GAS (CNG) REFUSE TRUCK FLEET DPW & DPU conducted a CNG project feasibility study in March 2010 to replace 37 refuse trucks and build a CNG fueling facility We Evaluated: Vehicles & fuel consumption Type & Capacity of infrastructure Diesel Fuel Costs vs. CNG Supply Consideration Operating Expenses Government Incentives Environmental 4

CNG FUEL SUPPLY CONSIDERATION Diesel (C12H23 ) fueled vehicles are some of the highest producing greenhouse gas sources plus diesel is largely imported from countries that aren t necessarily our friends Natural gas (CH4) by contrast produces significant less greenhouse gas and is largely U.S. produced, plus there is a 100 + years supply of proven gas reserve City of Richmond Gas Utility has long term gas supply contracts for fuel produced in U.S. City of Richmond can hedge gas costs to ensure fuel costs meets budget American fuel = American jobs 5

TYPE & CAPACITY of CNG STATION Time fill vs. Fast fill with time fill station selected because: All trucks parked at central location Limited room for fast-fill dispenser staging line at site Time fill station generally lower cost High pressure gas unavailable (fast fill generally requires high pressure gas or costly compressor boosters) Fuel consumption: Refuse trucks (37) averaged 17 gallons of diesel each day DPW study indicated they could right-sized fleet and replaced all diesel fleet with 25 CNG trucks The CNG trucks were estimated to use approximately 22 diesel gallons equivalent (DGE) each day 6

DPW CNG OPERATION Fuel Production (2011 2013) Diesel displaced = 252,853 galls @ $3.21/gal = $811,659 (28 months) Compression and O&M = $1.29 DGE City Net to Payback = $811,659 326,180 =$485,479or $17,338/mo since 2011 Not included: $0.56 per DGE DOE Credit Tailpipe Emissions 23% less CO2 87% less soot 87 % less NOX 70% less CO * Increased methane emission offset by less CO2 emission Natural Gas Delivery & Compression Compressed Natural Gas Dispensing 7

CNG VEHICLE MAINTENANCE & O&M Maintenance and Repair Costs So far the CNG trucks engine maintenance and repair costs are less than diesel (*>$1,400 per truck per month old vs. new trucks not factored in) Fueling Station Power Cost Power cost - $0.15 per DGE CNG Compression O&M Noise Contract $0.30 to $0.60 per DGE (depending on scope and volume) 70% less noise vs. diesel Safety (safer vs. diesel or gasoline) Natural gas is lighter than air therefore dissipates Natural gas is non-toxic (diesel or gasoline is toxic and spills do contaminate soils) 8

BENEFITS OF USING NATURAL GAS REFUSE TRUCKS Natural Gas is a cleaner fuel vs. diesel or biodiesel Less particulate matter fewer Asthma attacks Lower Levels of Nitrogen oxides less smog Less non-methane hydrocarbons emissions Less toxins in the air Noise (NY study): Reduction vs. diesel alongside the truck is 79.5 to 69.3 decibels Inside the cab 82.8 to 71.3 EPA estimate that occupational exposure to diesel increases the risk of lung cancer by 20-50% 9

BENEFITS OF USING NATURAL GAS REFUSE TRUCKS CONTD. Hydrogen fuel is the ultimate objective It is completely sustainable and pollutionfree. CNG is considered a Hydrogen bridge from which hydrogen can be made, also the Natural Gas fueling infrastructure can easily be converted to deliver hydrogen (Gas) So! 10

WHY NATURAL GAS? Economics Emissions Energy Security On a Clear Day! Market Demand 11